Retirement Planning/convert- roth

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Question
What is required to convert and transfer my IRA funded with after tax money to my Roth IRA?
Thank you

Answer
You will have to pay ordinary income taxes on any of the growth of your account. So let's say your contributions were $100k and the account had grown to $120k, you would have to pay income taxes on the $20k that the account had earned. Taxes would include federal and state tax (depending on your state). It would be taxed just as if you had earned it working. Hope this helps. Good luck!

Dave
diannopollo@twcny.rr.com

Retirement Planning

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David M Iannopollo

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I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances. I can also show you how to take advantage of the stock market gains without the risk of loss!

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